Basic Element (company)
{{Short description|Russian Company}}
{{Infobox company
| name = Basic Element Group of Companies
| logo = Be-logo.jpg
| logo_size = 160px
| caption =
| type = Diversified industrial group
Private company limited by shares
| foundation = {{Start date|1997}}
| founder = Oleg Deripaska
| location = Moscow, Russia
(Head office)
Jersey
(Registered office)
| key_people = Valery Pechenkin
(General Director)
Gulzan Moldazhanova
| industry = Energy, Manufacturing, Financial Services, Construction and Aviation.
| revenue = {{US$|27 billion|link=yes}} (2012)
| assets =
| owner = Oleg Deripaska
| num_employees = Approximately 150,000 (2014)
| homepage = {{URL|www.basel.ru}}
}}
Basic Element Ltd. ({{lang-rus|Ба́зовый элеме́нт|Bazovy element|ˈbazəvɨj ɨlʲɪˈmʲent}}, or simply {{lang|ru|Базэл}}) is one of the largest diversified industrial groups in Russia. The company was founded in 1997 and is owned by Oleg Deripaska.{{cite news |title=Oleg Deripaska's Basic Element conglomerate now has a former spook as CEO |url=https://meduza.io/en/news/2018/06/15/oleg-deripaska-s-basic-element-conglomerate-now-has-a-former-spook-as-ceo |accessdate=16 June 2018 |work=«Медуза» |date=15 June 2018}} It is based in the British tax haven of JerseyUS-Finanzministerium 6 April 2018: [https://home.treasury.gov/news/press-releases/sm0338 Treasury Designates Russian Oligarchs, Officials, and Entities in Response to Worldwide Malign Activity], retrieved 9 April 2018. and is headquartered in Moscow.{{cite web|url=http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=4516197|archive-url=https://web.archive.org/web/20081210154301/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=4516197|url-status=dead|archive-date=December 10, 2008|title=Basic Element Company|publisher=Business Week|accessdate=2009-07-28}} It was known as Siberian Aluminum until 2001.{{cite web|title=History of the Russian Aluminium Industry|url=http://www.rusal.ru/en/aluminium/history/|website=Rusal.ru|accessdate=2 June 2017|archive-date=24 May 2017|archive-url=https://web.archive.org/web/20170524003126/http://rusal.ru/en/aluminium/history/|url-status=dead}}
Overview
Basic Element manages Oleg Deripaska's investments into the six economic sectors of energy and mining, manufacturing, financial services, construction and real estate, agribusiness, and airport and airline management.{{cite web|url=http://www.basel.ru/en/business/|title=Business|publisher=Basic Element|accessdate=2014-09-02|archive-url=https://web.archive.org/web/20140826140246/http://www.basel.ru/en/business/|archive-date=2014-08-26|url-status=dead}}
Over 150,000 people work at the group's companies in Russia and the CIS, Africa, Australia, Asia, Europe, and Latin America as of 2014.{{cite web|url=http://www.basel.ru/en/key_facts/|title=Company key facts|publisher=Basic Element|accessdate=2014-09-02|archive-url=https://web.archive.org/web/20140826092138/http://www.basel.ru/en/key_facts/|archive-date=2014-08-26|url-status=dead}}
In 2007 the company's revenues were US$26.8 billion, representing 45% growth relative to the previous year, and it had US$45 billion worth of assets.{{cite web|url=http://www.basel.ru/sectornews/news_26_06_2008/?ELEMENT_CODE=news_26_06_2008|title=Basic Element increases assets and revenues|publisher=Basic Element|accessdate=2014-09-02|archive-url=https://web.archive.org/web/20150630201240/http://www.basel.ru/sectornews/news_26_06_2008/?ELEMENT_CODE=news_26_06_2008|archive-date=2015-06-30|url-status=dead}} In 2012 the company's revenues were US$27 billion.{{cite web |url=http://www.rbc.ru/rbcfreenews2.shtml?/20130621091849.shtml |title=Суммарная выручка группы "Базовый элемент" в 2012г. составила 27 млрд долл. |publisher=RBC |accessdate=2014-09-02 |url-status=dead |archiveurl=https://web.archive.org/web/20140715020255/http://www.rbc.ru/rbcfreenews2.shtml?%2F20130621091849.shtml |archivedate=2014-07-15 }}
Basic Element built several Olympic facilities for 2014 Winter Olympics in Sochi, including the Coastal Olympic Village, Imeretisnkiy sea port, Doubler of Kurortny Avenue in Sochi, renovation of the Sochi International Airport. The total investments account for over $1.4 billion.{{Cite news|title=Rich Russians Sparring With Putin Over $48 Billion Olympics Bet|url=https://www.bloomberg.com/news/articles/2013-11-26/rich-russians-sparring-with-putin-over-48-billion-olympics-bet|work=Bloomberg|access-date=14 January 2016|first1=Stephanie| last1=Baker| first2=Ilya|last2=Arkhipov|date=26 November 2013}}
In June 2016, after the United States Treasury listed Basel on its list of Russian Oligarchs, Officials, and Entities in Response to Worldwide Malign Activity, Valery Pechenkin ({{langx|ru|Валерий Печенкин}}) became the general director of Basel, replacing Gulzhan Moldazhanova ({{langx|ru|Гульжан Молдажанова}}). Moldazhanova had been the general director from 2005 until 2009, when Deripaska became general director, and then again from the summer of 2012 until June 2018.{{cite news |url=https://www.rbc.ru/business/15/06/2018/5b237e679a7947a1d8580a9f |title=Экс-замдиректора ФСБ возглавил "Базовый элемент" Олега Дерипаски: В "Базовом элементе" сменился генеральный директор. Вместо Гульжан Молдажановой холдинг возглавил ее заместитель Валерий Печенкин, который до своего прихода в компанию был замдиректора ФСБ |trans-title=Former Deputy Director of the FSB headed the "Basic Element" Oleg Deripaska: The General Director has been replaced at Basic Element. Instead of Gulzhan Moldazhanova, the holding was headed by her deputy Valery Pechenkin, who was the deputy director of the FSB |language=ru |work=«РБК» (rbc.ru) |date=15 June 2018 |access-date=10 August 2021}}{{efn|Lieutenant General Valery P. Pechenkin ({{langx|ru|Валерий Печенкин}}) was in the Russian intelligence community for 30 years. He was the head of the FSB directorate for the Novosibirsk Oblast before becoming in charge of counter intelligence as the deputy director of the FSB from 1997 to 2000.{{cite news |last=Прянишников |first=Пётр (Pryanishnikov, Pyotr) |url=http://www.compromat.ru/page_11500.htm |title=Атака на призраков: Бывшие сотрудники КГБ разработали план борьбы с нынешними сотрудниками ФСБ |trans-title=Attack on ghosts: Former KGB officers develop a plan to combat current FSB officers |language=ru |work="Версия" (Versiya) |date=1 February 2001 |access-date=10 August 2021 |quote=Archived at compromat.ru on 1 February 2002.}}{{cite news |last=Хотенков |first=Игорь (Khotenkov, Igor) |url=http://www.compromat.ru/page_11442.htm |title=Теневой кардинал "СИБАЛа": Истории из жизни тайного советника Олега Дерипаски |trans-title=Shadow Cardinal "SIBAL": Stories from the life of Privy Councilor Oleg Deripaska |language=ru |work=compromat.ru |date=16 January 2003 |access-date=10 August 2021}} Pechenkin supported Deripaska when Deripaska obtained billions in Russian money from Minatom's uranium deals. He then started working for Deripaska and Deripaska's SibAl.{{cite news |last=Лурье |first=Олег (Lurie, Oleg) |author-link=:ru:Лурье, Олег Анатольевич |url=https://2003.novayagazeta.ru/nomer/2003/03n/n03n-s13.shtml |title=СВИДЕТЕЛЬ ОБВИНЕНИЯ ╚РУССКОЙ МАФИИ╩: РАЗЫСКИВАЕТСЯ РОССИЕЙ ЗА РЯД УГОЛОВНЫХ ПРЕСТУПЛЕНИЙ |trans-title=WITNESS FOR THE PROSECUTION OF THE ╚RUSSIAN MAFIA╩: WANTED BY RUSSIA FOR A SERIES OF CRIMINAL CRIMES |language=ru |work=«Новая газета» |date=16 January 2003 |access-date=10 August 2021 |archive-date=2 April 2003 |archive-url=https://web.archive.org/web/20030402030237/https://2003.novayagazeta.ru/nomer/2003/03n/n03n-s13.shtml}} Valery Pechenkin headed the security services of the Mikhail, Lev, and David Cherneys-Deripaska-Makhmudov-Tokhtakhunov and the Sergei Aksyonov ({{langx|ru|Сергей Аксёнов}}), Sergei Popov ({{langx|ru|Сергей Попов}}), and Anton Malevsky ({{langx|ru|Антон Малевский}}) associated Izmaylovskaya and Podolskaya Bratvas. Pechenkin has former heads of both the FSB and the Ministry of Internal Affairs ({{langx|ru|Министерство внутренних дел}}) working in these private security services.{{cite news |url=http://vanady.ru/repubblica1.htm |title=КОЛУМБ ОТКРЫЛ АМЕРИКУ: Итальянские злоключения Тайванчика |trans-title=COLUMBUS DISCOVERED AMERICA: The Italian misadventures of Taiwanchik |language=ru |work=la Repubblica |via=vandy.ru |date=7 January 2003 |access-date=10 August 2021 |archive-date=17 April 2003 |archive-url=https://web.archive.org/web/20030417004003/http://vanady.ru/repubblica1.htm}} [http://www.compromat.ru/page_12690.htm Alternate] archived on 17 January 2003.{{cite news |last1=Бонни |first1=Карло (Bonni, Carlo) |last2=Д'Аванцо |first2=Джузеппе (D'Avanzo, Giuseppe) |last3=Иванидзе |first3=Владимира (Ivanidze, Vladimir) |url=http://www.compromat.ru/page_12690.htm |title=Итальянские злоключения Тайванчика: Вот секреты грязных российских денег в Италии |trans-title=Italian Misadventures of Taiwanchik: Here are the secrets of dirty Russian money in Italy |language=ru |work=compromat.ru |date=7 January 2003 |access-date=10 August 2021}}}}
Operations
= Energy and mining sector =
En+ Group is Russia-based diversified mining, metals, and energy group. En+ Group holds:{{cite web|url=http://basel.ru/en/structure/|title=Business|work=basel.ru|access-date=2011-08-23|archive-url=https://web.archive.org/web/20110911090817/http://basel.ru/en/structure/|archive-date=2011-09-11|url-status=dead}}
- a 47.41% stake in alumina and aluminium producer UC RUSAL
- a 100% stake in EuroSibEnergo PLC power company
- a 100% in Strikeforce Mining and Resources Ltd (SMR) (ferromolybdenum producer)
- a 100% in En+ Downstream (includes aluminium downstream assets)
- a 100% in En+ Coal
- Central European Aluminium Company (CEAC), which has run the Kombinat Aluminijuma Podgorica (KAP) aluminium smelter in Montenegro, and the Rudnic Boxita Niksic bauxite mine, which supplies raw materials for the smelter, since 2005.
- Dmitrov Pilot Plant for Aluminium Canning Tape (DOZAKL) strip with a polished surface for the manufacture of lamplight reflectors and lath ceilings.{{cite web|url=http://eng.enplus.ru/business/|title=Our businesses|work=enplus.ru|access-date=2014-09-02|archive-url=https://web.archive.org/web/20140903150106/http://eng.enplus.ru/business/|archive-date=2014-09-03|url-status=dead}}
= Machine building sector =
JSC Russian Machines was established in 2005 to unite Basic Element's machine building assets.
= Airport management =
Basel Aero, a joint venture between the Singaporean Changi Airports International, Basic Element, Sochi International Airport and the Russian Sberbank, is a company-operator of airports in Sochi, Krasnodar, and Anapa. As of 2015 the company handles 9.5% of total passenger traffic and 3.5% of the total cargo traffic in Russia.{{cite news|title=Аэропорты «Базэл Аэро» с января по май 2016 года обслужили более 2,8 млн пассажиров|url=https://www.kommersant.ru/doc/3013215|accessdate=14 July 2017|work=Коммерсантъ|date=14 June 2016}}
==Basel Aero Airports==
= Financial services sector =
Basic Element has been managing Oleg Deripaska's personal stake in the amount of 10% of Ingosstrakh's ordinary shares.
= Construction sector =
JSC Glavstroy is a vertically integrated construction holding corporation. Management functions are carried out by Glavstroy-Management.
=Other businesses=
==Agribusiness==
- Kuban AgroHolding
- AquaDin (LLC), manufacturer of non-alcoholic beverages
- Voskhod Stud Farm
==Port business==
- Imeretinsky Port, Sochi
==Real estate==
- BasEl Real Estate
Owners and management
The owner of the "Basic Element" is entrepreneur Oleg Deripaska. Legally most of the assets of the companies included in the "Basic Element" belong to one degree or another to Basic Element Ltd (registered on the island of Jersey), which is 100% owned by A-Finance, a company registered in the British Virgin Islands, the beneficiary of which is Deripaska.{{Cite web |last=журнал «Профиль» |first=Еженедельный |title=ПОСТПИКАЛЕВСКАЯ РОССИЯ: НОВАЯ ПОЛИТИКО-ЭКОНОМИЧЕСКАЯ РЕАЛЬНОСТЬ |url=https://profile.ru/archive/postpikalevskaya-rossiya-novaya-politikoekonomicheskaya-realnost-121244/ |access-date=2024-06-06 |website=Профиль |language=ru-RU}}
CEO is Valery Pechenkin.{{Cite web |date=2018-06-15 |title=Валерий Печенкин возглавил «Базовый элемент» Олега Дерипаски |url=https://www.kommersant.ru/doc/3660702 |access-date=2024-06-06 |website=Коммерсантъ |language=ru}}
Notes
{{Notelist}}
References
{{Reflist}}
External links
- [https://web.archive.org/web/20110904170441/http://www.basel.ru/%2fen%2f Basic Element company website]
{{Authority control}}
Category:Conglomerate companies of Russia
Category:Investment companies of Russia
Category:Multinational companies headquartered in Russia
Category:Conglomerate companies established in 1997
Category:Russian companies established in 1997
Category:Companies based in Moscow
Category:Russian entities subject to U.S. Department of the Treasury sanctions